8-10% growth rate achievable, says FM Arun Jaitley

Amidst global slowdown, Finance Minister Arun Jaitley today expressed confidence that 8-10 per cent growth rate is achievable on the back on increased investment and right mix of policies.

“I do believe it is (8 per cent and above growth) achievable… if we take right steps in right direction and hopefully we don’t have too many adverse global trend. It could be reasonably achievable. In order to achieve it is extremely important that we open ourselves for investments,” he said.

In his address at the Indian Chamber of Commerce event here, Jaitley said roadmap for phasing out of exemptions to corporate will be announced soon.

India has to accept that higher direct taxes are not in larger interest of the economy, he said.

“I have announced in Budget with effect from next year over next few years I will bring down the rate of corporate tax from 30 per cent to 25 per cent. I stand by that commitment. Simultaneously, even though the rate is 30 per cent the effective rate is 22. The reason is there are as large number of exemptions,” he said.

So, slowly a number of these exemptions are going to be phased out, he said.

On growth potential he said, even between 6-8 per cent growth, the thinking India believes that this is not our potential. The entire battle in terms of policy battle is to evolve ourselves from this 6-8 per cent growth to 8 per cent growth upwards towards a double digit.”